Two-day market rout: Sensex, Nifty extend sell-off; investors lose Rs 6 lakh crore in two days

Indian equity benchmarks continued their downward trend for the second consecutive session on Tuesday, with the 30-share BSE Sensex pack closing 436.41 points or 0.51 per cent lower at 84,666.28. The decline over two days totals 1,046 points. Meanwhile, the broader NSE Nifty pack fell 120.90 points or 0.47 per cent to settle at 25,839.65, marking a two-day drop of 346.90 points.

The fall wiped out more than Rs 6 lakh crore of BSE market capitalisation (m-cap), reducing investor wealth from Rs 470.96 lakh crore on the previous Friday to Rs 464.91 lakh crore by the close of trade.

Ajit Mishra, SVP of Research at Religare Broking, remarked, "Markets remained volatile on the weekly expiry day and ended with a cut of nearly 0.5 per cent amid mixed cues. The tone was weak from the outset, and the pressure intensified during the first hour of trade. However, support from select heavyweights across sectors helped trigger a mid-session recovery, followed by marginal swings till the close. Eventually, the Nifty settled around 25,839."

He added, "Sectorally, a mixed trend kept participants engaged, with realty and energy ending in the green while IT and auto closed lower. Notably, the rebound in the broader indices -- midcap and smallcap -- offered some respite after the recent sharp decline."

Mishra highlighted continuing market fragility due to global factors, stating, "Sentiment remained fragile due to global Fed jitters ahead of the policy announcement. In addition, fresh tariff concerns on Indian rice exports weighed on agri-related stocks, while persistent FII outflows and the rupee's slide past 90 continued to add to investor anxiety."

Vinod Nair, Head of Research at Geojit Investments, observed that domestic equities extended profit booking amid caution ahead of the US Fed's policy decision and other influencing factors.

He said, "Domestic equities opened lower, extending profit booking amid caution ahead of tomorrow's US Fed policy decision, rupee weakness, persistent FII outflows, and ongoing uncertainty over the US–India trade deal. IT stocks led the decline, while PSU banks, realty, and consumer durables gained, with small caps outperforming other indices."

Nair also pointed to global pressures, including, "Global sentiment was further pressured by surging Japanese bond yields and expectations of BoJ tightening in its upcoming December meeting. While the markets largely anticipate a 25-bps rate cut by the Fed and a rate hike by the BoJ, forward guidance for 2026 will be critical."

He added that "In the near term, central bank commentary, currency movement, and FII flows will steer sentiment, while domestic macro resilience is expected to provide a cushion against downside risks."

Aakash Shah of Choice Equity Broking stated, "Technically, Nifty holds immediate support at 25,650–25,700, while strong resistance persists at 25,950–26,000, a zone where supply has consistently capped upside. For Bank Nifty, immediate support lies around 58,900–59,000, with resistance placed near 59,500–59,600."

He concluded, "Overall, the tone remains cautious to mildly bearish. However, selective strength in the broader market suggests opportunities may emerge if key support levels hold and buying interest sustains."